Mr. Marc Lustig reports

CANNAROYALTY TO SELL EQUITY STAKE IN WAGNER DIMAS TO AUSTRALIS CANNABIS

CannaRoyalty Corp. has signed a letter of intent with Australis Capital Inc., whereby Australis intends to purchase 2.2 million shares of common stock in the capital of Wagner Dimas Inc. from Cannroy Delaware Inc., a wholly owned subsidiary of CannaRoyalty Corp. This announcement follows the announcement of the sale of the company's exclusive Canadian licence for Wagner Dimas's preroll technology to Aurora Cannabis.

Pursuant to the agreement, Australis intends to purchase Cannroy Delaware's 22-per-cent equity interest in Wagner Dimas. As consideration for the share purchase, Australis would pay $3-million, payable in either common shares of Australis or cash.

Marc Lustig, chairman and chief executive officer of CannaRoyalty, said: "Over the past year, our team has been focused on building a platform that will position CannaRoyalty as the go-to home of origin for promising growth brands in the California market. To support these ongoing efforts, in early 2018 we outlined a plan to rationalize non-core assets. To date we have successfully executed that plan, generating significant returns for shareholders and non-dilutive capital to fund our California buildout."

The agreement is subject to customary closing conditions.

About CannaRoyalty Corp.

CannaRoyalty is a North American cannabis consumer product company currently focused on building a leading distribution business in California, the world's largest regulated cannabis market. By building a world-class logistics platform and supporting contract manufacturing assets, the company intends to support the growth of new and established cannabis brands. The company believes California, home to some of the world's most discerning consumers and a nexus of information and trends, will be the point of inception for the global cannabis brands of the future.

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